Multiple choice

Directions: Choose the correct option for the given question.

The basis of determining dearness allowance to employees in India is

  1. National Income

  2. Consumer Price Index

  3. Standard of Living

  4. Per Capita Income
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Dearness Allowance (DA) in India is calculated based on the Consumer Price Index (CPI), specifically the CPI for Industrial Workers (CPI-IW). The DA is meant to compensate employees for inflation and is revised periodically based on changes in the CPI. Options A, C, and D (National Income, Standard of Living, Per Capita Income) are not the basis for DA calculation.

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